New Horizon for Small Business Lending Rules

10

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

The proposed regulations, aimed at modifying the National Consumer Credit Protection Regulations 2010, will push the deadline of the current small business lending exemption to October 3, 2026, from its original expiry of October 3, 2024.

Essentially, this extension means that loans serving both personal and legitimate business purposes-where the business component isn't marginal-will remain exempt from responsible lending regulations.

Current consumer credit laws, highlighted in Chapter 3 of the National Credit Act, generally bypass commercial funding. However, mixed-purpose loans (for example, blending personal and commercial finance needs) are subject to these laws unless it is evident that the primary use is for business.

Eligibility for the exemption defines a small business as having fewer than 100 employees or recording revenue of $5 million or below in the last fiscal year.

Extending the exemption offers more runtime for gathering data, which will aid in making a well-informed future decision about whether the exemption should become permanent, expire, or be altered to boost efficacy.

This approach appears to shed light on the adaptability of lending regulations, pushing boundaries for the benefit of small business dynamics within the evolving market landscape.

Source: Initially reported by David Jacobson, Bright Corporate Law Principal.

Disclaimer: This information is shared for informative purposes and should not be considered as legal advice. Always seek expert consultation to address specific needs before acting on any information provided.

Published:Thursday, 15th Aug 2024
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Finance News

Clear

Australia's Marine Industry Surges to $229 Billion Economic Output

08 Nov 2025: Paige Estritori

Australia's marine industry has demonstrated remarkable resilience and growth, achieving an economic output of $229 billion in 2023. This represents a 19% increase compared to two years prior, as reported by the Australian Institute of Marine Science (AIMS). The sector now supports 712,000 full-time equivalent jobs, marking a 52% rise in employment. - read more

Australia and Vanuatu Forge $325 Million Nakamal Agreement

08 Nov 2025: Paige Estritori

In a significant move to bolster regional partnerships, Australia and Vanuatu have signed the Nakamal Agreement, a $325 million bilateral treaty aimed at enhancing economic, security, and cultural cooperation. Named after Vanuatu's traditional communal meeting place, the 'nakamal,' this agreement underscores the deepening ties between the two nations. - read more

Australia's $8 Billion Investment in Nuclear Submarine Shipyard

08 Nov 2025: Paige Estritori

Australia has announced a substantial investment of $8 billion to establish new defense facilities in Western Australia, as part of its commitment to the AUKUS nuclear submarine deal. This initiative aims to enhance the nation's naval capabilities and strengthen its strategic position in the Indo-Pacific region. - read more

Experience the Sydney International On-Water Boat Show This November

31 Oct 2025: Paige Estritori

The Sydney International On-Water Boat Show is set to make a grand return from 13 to 16 November 2025 at Darling Harbour. This four-day event, presented by the Boating Industry Association Ltd (BIA) in partnership with Mulpha Events, promises to be a highlight for boating enthusiasts and industry professionals alike. - read more

Melbourne Boat Show 2025 Draws Record Crowds at Docklands

31 Oct 2025: Paige Estritori

The 63rd Melbourne Boat Show, held from 16 to 19 October 2025 at Docklands, has been hailed as a resounding success, drawing close to 39,000 boating enthusiasts and industry professionals. This free event showcased the vibrancy and resilience of Victoria's marine industry, offering attendees a comprehensive experience of the boating lifestyle. - read more

South Australia's Marine Ecosystem Faces Unprecedented Algal Bloom

31 Oct 2025: Paige Estritori

Since March 2025, South Australia's coastline has been grappling with a harmful algal bloom (HAB) that has severely impacted marine life, the fishing industry, and tourism. The bloom, attributed to the proliferation of the microalgae Karenia mikimotoi, has led to the deaths of thousands of marine creatures and has caused health issues among beachgoers, including respiratory problems and eye irritation. - read more

Click for more Finance News